Classical

Business Economics - Business Economics Questions

51:  
Diminishing returns are due to __ and increasing returns are due to _ .
A.

Internal diseconomies, internal economies

B.
Internal economies, internal diseconomies
C.

External diseconomies, internal economies

D.

Internal diseconomies, external economies

 
 

Option: A

Explanation :

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52:  
Oligopoly is a market situation where
A.
There are few firms producing entirely different goods
B.
There are few firms producing complementary goods.
C.
There are few firms producing close substitutes.
D.
There are two or more monopolistic firms.
 
 

Option: C

Explanation :

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53:  

Imperfect competition arises when

A.

There is imperfect rivalry among competitors

B.
There are unexplainable imperfections in the market
C.

Competition does not exist

D.
Product variation, ignorance of consumers and distance and transport costs lead to imperfections in the competitive
market which operates on certain assumptions.
 
 

Option: D

Explanation :

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54:  

Duopoly means

A.
Two firms are interdependent as regards their price-output decisions
B.
Two firms are independent as regards their price-output decisions
C.

Two monopoly firms

D.

None of the above

 
 

Option: A

Explanation :

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